Maroc - dailynews.co.za - Business - 14/Aug 16:45

Hume says trade restrictions on Brazilian poultry deal a heavy blow to SA industry

Hume International, one of the largest importers of frozen food-based commodities in South Africa, has said the glaring mismanagement and inconsistent trade policies were creating a disaster for South African businesses and consumers, following the blanket ban on poultry from the entire Brazilian state of Rio Grande do Sul due to a single case of Newcastle disease.Newcastle disease is a viral illness that affects domestic and wild birds.Roy Thomas, Hume logistics and operations director, said authorities confirmed a case of Newcastle disease in a commercial flock in Rio Grande do Sul last week – the first recorded outbreak in the country since 2006. “Despite the solitary nature of the incident, the Department of Agriculture, Land Reform and Rural Development (DALRRD) has suddenly imposed immediate trade restrictions on all day-old chicks, hatching eggs, table eggs, and poultry meat from establishments in Rio Grande do Sul. Likewise, all unused import permits have been cancelled,” Thomas said.Hume said that in addition to the cancellation of permits, consignments already en route to South Africa containing products packed in their final packaging in Rio Grande do Sul on or after June 18, 2024, would be rejected, and either returned to Brazil or destroyed at the importer’s expense. This represented a harsh blow to businesses and could leave a gaping hole in poultry inventories come September and October, with serious impacts on the price of mechanically deboned meat (MDM), chicken livers, and turkey cuts.Hume said local Brazilian authorities have advised that the area where the case was identified has been isolated and no other cases have been detected. It said that additionally, as per the World Organisation for Animal Health (WOAH) Terrestrial Animal Health Code, Newcastle disease had an incubation period of 21 days, suggesting that Brazil should have been declared Newcastle-free from the beginning of this month.The business said DALRRD’s actions contravened the terms of the Import Permit and Health Certificate, which state that products should not originate from facilities within a 10km radius of the affected farm. Some countries, such as Canada, Israel, Japan, and Namibia, have even adopted a 50km radius as a quarantine measure.Thomas said Brazil was the largest exporter of poultry globally, and between 15% to 20% of its poultry and some 50% of its turkey was produced in Rio Grande do Sul. “Also pointing to the severity of the situation, South Africa imports an average of over 18 000 metric tons of chicken MDM every year, which is a vital component in the production of polony and sausages for the lower LSM market sector,” he said. “A staggering 90% of this product is sourced from Brazil.”Thomas said this situation was the direct result of DALRRD banning the entire province and not applying the regionalisation clause as indicated on the Import Permit and Health Certificate. “The loss of this vital trade partner will have far-reaching consequences for local consumers, and we therefore plead with government to adhere to the Import Permit and Health Certificate that is in place with Brazil,” Thomas said.“Thousands of jobs are on the line. The risk of another bout of serious food price inflation looms large at a time when the local poultry industry is just recovering from the crippling effects of the recent bird flu outbreak. The time to act is now.”Izaak Breitenbach, the general manager at the South African Poultry Association (Sapa), yesterday said the issue of a ban on one province of Brazil was not as bad as detailed by Hume International. Breitenbach said they did not expect that this small ban would have any impact on local prices and would have no impact on jobs. “Only one province in Brazil is banned from exporting to South Africa. The others still export normally and then there are further imports from an array of countries from Europe, the USA, Argentina, and Australia,” Breitenbach said.“Brazil has exterminated the disease and the Department of Agriculture will no doubt follow suit and lift the ban as per international rules.”BUSINESS REPORT